The Right Asset Mix for Coming Year

Investors need to alter their portfolios to prepare for increased economic growth, writes a JPMorgan strategist.

From 1960 to 2005, real gross domestic product, the inflation-adjusted output of goods and services in the United States, grew at an average rate of 3.4% per year. However, since 2005, annual growth has never even reached 3.0%, as the economy fell into a deep recession and crawled only slowly out of it.

That being said, over the course of 2014, there is a good chance that the economy will grow by more than 3.0% for the first time in the last nine years. While there are plenty of potential obstacles to even this modest...